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| Insurance Management
Services |
An
Overview
Introduction
This paper seeks to introduce R&Q Caledonian Insurance Management Services Ltd (CIMS).
The company is able to provide first class insurance/risk management and consultancy
services. The principal director of this operation is Penny Hudson, who is a Fellow of
The Chartered Insurance Institute. Established in 1996, R&Q Caledonian has gained valuable
experience in all types of insurance facilities, in all areas of the EEA and other continents.
Over the last 16 years R&Q Caledonian has licensed and managed 8-12 insurance companies,
including life and general, and life and general cell facilities.
The company has literally grown up with the European Union legislation and is experienced
in many areas of writing insurance business throughout the European Union.
We presently advise the largest life cell by contract insurance company under Freedom
of Services, with circa £450 million assets under administration, the largest motor insurer
on an Establishment basis, and a number of smaller specialist insurance companies writing
insurance throughout Europe.
We have an excellent and long standing relationship with the Financial Services Commission,
together with the relevant Government departments.
We are based in modern offices in Main Street, with 16 staff and up to date IT
and systems recovery.
The services we provide are;
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Full
insurance/risk management provisions including corporate governance to
the highest level. |
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Consideration
of captive insurance companies by brokers without their own
management facility. |
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Complete
separation of insurance broking and insurance company management. |
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Independent
review of existing insurance arrangements. |
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Access
to specialist reinsurance brokers. |
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Gibraltar
office for other insurance management groups without local
representation. |
Our activity falls broadly into four areas:
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Initial review - a generalised commentary whether a captive may be appropriate to
the insurance requirements of a group. It would seek to highlight points for
consideration e.g. adequacy of premium expenditure, risk management approach,
claims experience and any special factors relevant to an industry group. |
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Feasibility study - commissioned generally in situations where a group is committed
to the idea and where an initial review has indicated that a captive can provide
benefit. The feasibility study is a turnkey document and serves as the blueprint to
incorporating and registering a captive. It considers rationale, objectives,
methodology, risk retention, reinsurance, domicile, tax, investment policies, and
recommends whether a captive presents suitable opportunity to a group. |
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Insurance management - this is the key area of activity and commences where a
feasibility study concludes. This will cover all the long term requirements in
managing the day to day requirements of the client’s insurer and duties and
obligations are agreed with the client at the outset. |
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General review - a review of an existing insurance managed and/or domiciled
elsewhere. This review may pre-empt a change in Management Company, or
more often, serve to confirm that the management of the captive is appropriate to
the needs of the parent. |
R&Q Caledonian Insurance Management Services Ltd (CIMS) was one of the first
companies to be licensed in Gibraltar under the most recent European Directives
passed in Gibraltar. We began managing captives in 1997.
In June of 1997, Gibraltar became an unique financial jurisdiction because of its position
within the European Community. The new EEA laws have been implemented on the
basis of meeting the requirements of the harmonisation of insurance law. Therefore
insurance companies based in Gibraltar are able to take advantage of the freedom of
services legislation, and issue insurance direct throughout the Member States. This has
led to a number of proposals for utilising the direct writing facility.
A number of Life Assurance projects have also been forthcoming. Increasingly
companies are exploring insurance and investment alternatives for both employee
benefits and new products. The advantage to life assurance premiums also is that they
tend not to have premium taxes and much lower withholding taxes, if any.
The types of insurance structure able to be formed in Gibraltar are as follows;-
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Reinsurance |
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Direct writing |
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Protected Cell companies (reinsurance and direct) |
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Captive or facilities writing third party business. |
Client companies under application and management in Gibraltar have a variety of
parent industries;-
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Telecommunications |
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Landlords |
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Diamond carrier |
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Motor industry |
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Airline association |
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Insurance |
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Life assurance |
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Hotel Chains |
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Church |
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Underwriting agencies and Lloyds syndicates |
And the insurance business written through captives and/or direct writers, together with
present applications, managed by ourselves include
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Property fire and damage |
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Miscellaneous financial loss |
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Life and annuity |
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Life linked long term (pension management) |
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Motor |
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General Liability |
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Credit Insurance |
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Accident & Sickness |
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Goods in transit |
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Legal expenses |
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Breakdown assistance |
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Shipping |
Feasibility studies have reviewed:
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Private
high net worth clients for a Life Assurance company |
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Extended warranties |
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Oil servicing company |
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Telecommunications/Cable company |
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Credit insurance |
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To
provide insurance broking brand name products e.g. household contents and
specialised product liability |
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Shipping, specifically ports |
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Hotel complexes |
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Employee benefits |
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Property holding companies |
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Lloyds syndicates |
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Construction companies |
Summary
This resume has sought to provide a brief background as to the corporate activity of
CIMS. We are a professional company looking to provide conscientious insurance
solutions for our client’s benefit.
Regulatory and Domiciliary Issues
| Legislation: |
Insurance Companies Ordinance 1987.
Insurance Companies Ordinance (General Insurance and
Long Term Insurance Directives)
Regulations 1995. |
| Supervisory Authority: |
Insurance Supervisor, Gibraltar Financial Services Commission |
| Annual Licence Fees: |
General business - £21,450 to £23,700
Long term business - £29,750
General business (captive insurers/reinsurers) - £4,000
Long term business (captive insurers/reinsurers) - £11,800
(For the purposes of these Regulations, captive insurers are
regarded as insurance or reinsurance companies wholly owned
by a parent company which only covers risks of the group with no
third party risks).
Protected Cell Companies - £4,745 plus £1,775 per cell |
| Financial Reporting: |
Annual audited statutory accounts and quarterly management
accounts submitted to the Gibraltar Financial Services
Commission |
| Solvency Margins: |
Two Alternative Systems. Premium basis and claims basis.
The higher of the two applies. EEA related. |
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